JonesTrading’s Dave Lutz has a quick rundown of what traders are talking about right now.
Good Morning! Equity Futures have jumped off lows of the session in the last 2 hours, as China said it will accelerate economic policy changes to promote growth. The DAX is battling to get back near unchanged, but volumes pacing quite light. The worst market in Europe is the IBEX, as Session concerns spreading to Spain, ahead of tomorrow’s “Catalonia National day” — Spain’s 10YY has popped 23bp this week. Russia is off small, with the Cease-Fire still holding — but weakness in Brent should start to weigh there. Over in Asia, the Nikkei is up 20bp as the Yen fell, while China lost 25bp into their inflation prints later tonight. India retreated 80bp, that market has been en fuego this year — while Aussie lost 60bp in heavy trade as the Miners got hit on Chinese Growth Concerns. Keep an eye on EM – In addition to rising DM rates, Chinese Premier Li Keqiang signaled money-supply growth is slowing and Turkey’s economic expansion trailed estimates — EM stocks are having their worst day in 5 weeks.
The 10YY is popping back over 2.5% in the USA, while that “Policy Sensitive” US 2YY nearing 3 highs. The DXY is retreating from the 84.50 level, as the British Pound, Euro and Yen all see a bounce from recent weakness against the Greenback. The weaker $US should be a tailwind for commodities — but growth concerns outweigh — Gold is well off session highs, and Copper is fighting to stay unchanged after yesterday’s smackdown. The Grain complex was clobbered yesterday, and remains in the red ahead of WASDE data today. Finally — remain focused on the Crude Complex — despite API showing a decent drawdown in Cushing, WTI has lost session gains already and is back in the red as Brent touched $US99, 16M lows. Scheduled Catalysts today include BOE Governor Mark Carney speaking at 9:45, Wholesale Inventories at 10, DOE data at 10:30, A tiny POMO at 11, at 12 we get the Agricultural Supply & Demand Estimates, and at 1 we have a 10Y auction. Keep an eye out for any angst building into Obama’s speech on ISIS tonight at 9pmET.